Indian Government to Sell Only 5-percent Stake in Coal India

Reuters reported that the Indian government has decided to sell only a 5-percent stake in Coal India Ltd. (BSE:533278); that is half the amount it originally planned to sell. The change is the result of a deal with the main trade unions.

As quoted in the market news:

‘On the advice of trade unions, the government has decided that instead of 10 percent, we will disinvest 5 percent,’ Coal minister Sriprakash Jaiswal said on Tuesday.

‘For the remaining 5 percent, the government will come out with a different mechanism. Major trade unions are ready for this,’ Jaiswal told reporters.

On Tuesday, shares in Coal India, valued by the market at $29 billion, closed 0.5 percent higher in a Mumbai market .BSESN that fell 1.25 percent.

Click here to read the full Reuters report.